2. Name Roll No. Manoj Gupta21 Fauzia Hasan22 Vinod Iyer 23 Pramod Jadhav24 Sameer Jadhav25 Nilesh Jain 26 Rajesh Jain27 Fazeel Kazi 29 Prashant Kokare31 LUXURY BRANDS

3. “Luxury brands are more than the goods. They give people the opportunity to live a dream. The goods are secondary because first of all you buy into a brand, then you buy the products.” Robert Polet - CEO of Gucci Everyone wants but nobody needs, Huge Comfort, Best of the Best Luxury Brands – A Life Well lived Global Market Size = $1.6Tn growing 7.9% Indian Luxury Market = $20Bn growing 20% US market for luxury cars

4. Bayerische Motoren Werke GmbH BMWBMWBMWBMW SUCCESS STORY The BMW Group is the leading provider of premium products and premium services for individual mobility

5. BMW – The Company 1916 RMW (Rapp Motoren Werke ) is founded as an aircraft-engine factory in Munich. In 1917, Changed to BMW. 1923 The first BMW motorcycle leaves the Munich production site. 1928 The first BMW automobile, the Dixi 3/15, developed in Munich. 1955 The BMW 503 and 507 sports cars are today’s 'golden oldies'. 1962 The 1500 model establishes the trend for the "new class" of sporty compact touring cars. 1981 BMW becomes the first European carmaker to establish a subsidiary in Japan. 1977 BMW introduces the first 7 Series car. The 733i sets new standards in technology, design and equipment. 2008 More than 140 countries, 28 plants 1.5Mn cars, 107,593 employees $70Bn revenue $2.2Bn Net Profit

6. The blue & white circular logo BMW still uses alludes to the blue & white checkered flag of Bavaria and also indicates a spinning white propeller on a blue-sky background. Brand Identity - Logo

7. Three Authentic Premium Brands Sheer driving pleasure Most exciting premium small car brand The pinnacle of automobile luxury 1.3 Mn Units 200k Units 1000 Units Customer Deliveries 2008 Brand Extension Vehicle related Products Car Finance Lease Fleet Management & Consulting Automotive Insurance Extended & Used Car Warranties Non Vehicle related Products Real Estate Loans Credit Cards Fixed-Term Deposits

8. Brand Positioning strategies Product Differentiation  communicate valued differences and distinguished by image (premium brand)  quality (cutting edge technology) & design (sleek and unique) Brand Leadership Positioning  BMW- maintained leadership for many years  consistent strategy  oriented towards meeting customer needs Head-On Positioning (comparative positioning)  BMW - Little comparison between BMW and Mercedes  Comparison only in customers mind Innovation Positioning  Practices continuous innovation.  Eg :redesigned 3-series model with better power, stiffer suspension, taillight lenses. THE ULTIMATE DRIVING MACHINE Residual Value

9. BMW – Driving pleasure One Word Equity (O.W.E) – Saatchi & Saatchi BMW – Driving pleasure Volvo – Safety Ferrari – Living-on-the-edge Lexus – Perfection Price Positioning Caters to high end customers High price supreme quality Range:Rs. 2.6Mn to Rs. 70Mn (RR Phantom Coupé) Lifestyle Positioning Young urban professionals (YUP) “status” associated with it. Brand Positioning strategies Brand Promise: Any road, any conditions, any time More than just a luxury car Overall Strategy Respect for the individual

10. Brand Identity Prism Personality Young Fun to drive Desirable Culture German – Competent & Serious, Quality International mindset Consumer self- projection Status Esteem Sleek Exclusive Sporty Physique Brings ‘excitement’ to life Relationship Cars for man's pleasure Prestige Consumer reflection Efficient Stylish, Attractive Exciting, Trendy Aspirational, Status-conscious RationalSensoryEmotionalSymbolic Brand Values

11. Brand POP & POD Point of Difference Strong, favorable, unique brand associations - Exclusivity Types: Attribute Based - Performance Image Based - Affective, experiential, brand image Point of Parity - Associations that are shared with other brands - Luxury Types: Category: attributes to include BMW as a member of Luxury Brand Competitive: POP that negate competitors PODs – Affluence, Fun to drive 1971 1975 1985 Economical Excitement to life Affluence Exclusivity International Desirability 1991 Luxury prestige Fun to drive

12. BMW– “Always Compete & Perform” Low High * Mercedes BMW * * Jaguar Toyota(Lexus) * * Alfa * Volvo Honda(legend)* * Audi *Saab High PERCEPTUAL MAP A car prestigious to own A financially effective car High price Opulence Élégance Quality Engineering Perform Efficiency Stylish Comfort Élite dealership Resale value Sophisticated Prestige BMW MENTAL MAP BMW Fuel Economy Fuel consumption [Ltr./ 100 km] 6.4 Ltrs 8 Ltrs Competitors * EU Test

13. Brand Resonance Pyramid Feelings Fun to Drive Judgments Compete & Perform Performance Any road in any condition Best Performance Imagery Dependable, Luxurious Resonance Elegance Salience Innovative Innovation Engineering & Technology Understands high performance Enhances the joy of driving Exhilarating driving experience Has superior handling Dominates the luxury car category

14. Ad Wars

15. EDSEL backronym: "Every Day Something Else Leaks! Brand Failures The Edsel B iggest Luxury Car failure in American history Introduced in 1957 by Ford Motor Company Produced in 4 models, Ford’s investment of $400m in its development Innovations:" rolling dome" speedometer, self- adjusting brakes Aggressively marketed and hyped: “Edsel Show", teaser advertisements Sold through a new network of 1,500 dealers

16. Why it failed: “Never build up enthusiasm for unseen, unproven product” - PR Director Edsel Named after Henry Fords son Sounded like Edson- an unpopular tractor Weasel(mammals) Dead cell Ugly ducklings don’t always become swans Nothing uniquely different Cultural issue with grill Hyping untested product: Name matters: Looks count:

17. Why it failed: : High price not justified in public’s mind : Competing against its own sister divisions : Priced within Mercury’s market price segment :Little market research : Huge sums to decide name instead( poets hired) : Bad quality control : Parts missing when reached dealers : Too big when small was in, not fuel efficient :Robert McNamara new Boss : Cost cutting and cost containment ideas : Saved Ford but Edsel discontinued Pricing Right research important Product Quality Recession Internal politics

18. : High price not justified in public’s mind : Competing against its own sister divisions : Priced within Mercury’s market price segment :Little market research : Huge sums to decide name instead( poets hired) : Bad quality control : Parts missing when reached dealers : Too big when small was in, not fuel efficient :Robert McNamara new Boss : Cost cutting and cost containment ideas : Saved Ford but Edsel discontinued Pricing Right research important Product Quality Recession Internal politics